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One thing that compels me to write this page is the belief I have that many people see commercials for a big name insurance
company and assume the sevices they brag on providing is the standard to measure by. This is my take on it.
One
of the first things to look at is the business structure. If it is a self-contained company, they are probably organized to
service all aspects of the industry. From taking the application to writing the check for a claim settlement. I have seen a
commercial making the claim that an insurance agent for a big company even loaned their car to a policyholder because the
policyholders' vehicle was disabled. Isn't that insurance agent lucky that only one policyholder had an emergercy
that day? Or did he have another vehicle to lend a second person? Further, can one agent have this close of a relationship
with 1000 policyholders? A small branch office of a major company can have that many policyholders within two years. So it
is not reasonable to think you will get this sort of personalized service from your "big company" agent.
Another point of interest is writing guidelines the big company agent has to follow. They have no choice if you don't
meet the policyholder guiceline but to tell you they are sorry they can't write you no matter how much they like you.
Also, no one company will have the best rates for all kinds of policies even if they give additional discounts for multline
policies.
Those are few reasons I like being an independent agent. I contract with different companies
that specialize in certain areas of the insurance industry so that not only will the policyholder get a good price, the company
will be specially organized to take care of risks they insure. It also helps a company to specialize so that the losses from
other areas wont exist to detract from the bottom line. If a company is not doing well with losses in one area, they
have to pass the loss on to the rest of its policyholders. That is not to say insurance companies that specialize don't
have losses. I am pointing out that when you insure a risk as a side to your specialty, you run the risk of missing procedures
that would save money. I consider this an extra loss that is passed on to the policyholders.
An independent agent
is motivated to get the best price because the different companies are in competition and file for rate increases and decreases
regularly.
Of course there is nothing wrong with getting a brand name if that makes you feel better. After all,
getting what you prefer usually comes with extra cost. But there is only one measure of any insurance company and that is
if they pay their claims and they all do that. Most simple claims are settled easily and most questionable claims will be
investigated. Otherwise, the speed in payment is the main measurement. In my experience a company that pays quickly is also
quick to cancel which is the main source of business for independent agents.
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